AMEC lands share of $154m Iraq contract.

AMEC, the international engineering services company with major operations in the U.S., will play an important role in the restoration of Iraq following the award of work worth US$154 million to Fluor Corporation, on which AMEC will act as prime subcontractor.

The work, which involves restoration of damaged power generation, transmission and distribution systems, positions AMEC well for future restoration contracts and reflects the company's status as one of the largest and most experienced engineering services businesses in the world.

Fluor secured the work through its contract with the U.S. Army Corps of Engineers, which will involve task orders worth up to $1.5 billion to Fluor over the next five years, to provide services to the U.S. Central Command area of operations, which includes Iraq.

"Fluor and AMEC will begin work immediately on this power contract and, as further needs are identified by USACE, may be called upon to provide a full range of engineering and construction services, including new work, restoration or repair and operation and maintenance services," said Ed Welsh, AMEC senior vice president responsible for AMEC's Americas Iraq operations.

The two companies also confirmed that, through their Fluor/AMEC joint venture, they are bidding for other contracts to be awarded by the Coalition Provisional Authority related to power generation and transmission, water treatment, transportation and other public works in Iraq. "The task of restoring Iraq's vital infrastructure is absolutely critical, if the country is to move forward, and the Iraqi people are to achieve something approaching normal life," said Sir Peter Mason, AMEC chief executive. "We see AMEC and Fluor as the natural choice to undertake this job."

AMEC also announced that it has appointed a managing director for the company's operations in Iraq. Christopher Wilkinson joins AMEC from Intergen, an independent power developer, where he was Vice President and Country Manager for Turkey and the surrounding regions and was responsible for the development, financing and construction of 3800 MW of new gas fired power generation.

The power-related work that Fluor and AMEC will be undertaking includes the rehabilitation of generation capacity in Baghdad, the reconstruction of a 132 kV transmission line in northern Iraq and the restoration of a water intake facility at a thermal power station in southern Iraq.

However, Sir Peter said that the uncertain environment in Iraq where contracts could change or be delayed at any time meant AMEC would take a cautious view of the value of contracts in Iraq. "We believe that any projections must be regarded as provisional at this stage."

AMEC also said that it would be retaining its own security services in addition to the security teams provided by the coalition forces.